The Bank of England has voted to keep interest rates at 0.5 per cent for another month. This is not surprising; indeed, it is widely expected that Base Rate – which has been static for more than three years – won’t rise for another couple of years at least.
Yet while interest rates haven’t moved, mortgage rates are on the rise. A handful of lenders, including Halifax, have raised their mortgage rates in the past week, following lenders such as Clydesdale and Yorkshire Banks increasing their standard variable rates earlier this month. Interest-only criteria continues to tighten, making it increasingly difficult for those with bonus-driven incomes to secure funding.
Service issues at certain banks are also causing problems for borrowers. We have seen a significant increase in buyers coming to us in desperation because their mortgage offer is taking so long to process that they are in danger of losing the property they are trying to purchase. When there is a dearth of desirable properties on the market, this is a disastrous situation for a buyer to find themselves in. Some lenders are taking several weeks just to get an offer out because they have been inundated with demand for their ‘best buy’ deals or have restricted their conveyancing panel. But this is too slow for many.
However, Anderson Harris can help steer clients in the direction of lenders who aren’t experiencing service issues. We can assist with getting funding arranged at relatively short notice and we know the private banks to approach for the right sort of client who needs interest-only.
These are difficult times when it comes to borrowing but there are often solutions if you know where to look. Advice is more crucial than ever.